SM Prime says earnings better in Q2

SM Prime Holdings Inc., the largest owner and operator of malls in the country, reported higher net income in the second quarter of the year, lifted by strong revenues in the period. In a statement to the Philippine Stock Exchange, SM Prime said its consolidated income in the April to June period jumped 15 percent to P2.15 billion as consolidated revenues climbed 12 percent to P6.64 billion. Meanwhile, for the year's first half, SM Prime said its earnings grew 14 percent to P4.27 billion as revenues reached P12.71 billion or a 12-percent improvement. "Better growth resulted from the opening of new Philippine malls in 2010, same store sales of seven percent, much improved performance in SM's China malls and lower borrowing cost," SM Prime said. Operating expenses during the period also rose 11 percent to P5.92 billion. First half rental revenues grew 15 percent to P10.92 billion, as compared to P9.49 billion during the same period last year. "The increase was brought about by healthy consumer spending which resulted in a seven-percent growth in same store sales and additional rental space from the opening of new SM malls in 2010. These malls are SM City Tarlac, SM City San Pablo, SM City Calamba, and SM City Novaliches, Cinema ticket sales amounted to P1.30 billion, compared to P1.37 billion during the same period last year due to a low turnout of blockbuster movies during the period," SM Prime added. - CMA/OMG, GMA News